Part 3 - Net Scottish Emissions Account (
NSEA) for
2014

state the amount of the net Scottish emissions account for
the target year (subsection (3)(a)).

state the proportion of the reduction in the net Scottish
emissions account which is accounted for by reductions in net
Scottish emissions (subsection (3)(b)).

state the total amount of carbon units:

that have been credited to or debited from the net Scottish
emissions account for the target year (subsection
(3)(c)(i));

that have been purchased in the target year (subsection
(3)(c)(ii));

that have been held and not surrendered in the target year
(subsection (3)(c)(iii)).

give details of the number and type of those carbon units
(subsection (3)(d)).

for each year in the period 2011-2050:

state the amount of the
NSEA
for each preceding target year (subsection (5)(a));

state the cumulative amount of the net Scottish emissions
account for the target year and all preceding target years
(subsection (5)(b)).

Amount of the Net Scottish Emissions Account for
2014

Achievement of Scotland's greenhouse gas emissions targets is
measured against the level of the net Scottish emissions account (
NSEA).
The
NSEA is
defined in the Act as the aggregate amount of "net Scottish
emissions" of greenhouse gases, reduced / increased by the amount
of carbon units credited to / debited from it in accordance with
the Carbon Accounting Scheme Regulations made under the Act.

Table 4 provides the amount of the net Scottish emissions
account in 2014, including the total amount of carbon units that
have been credited to or debited from the
NSEA as
the result of the operation of the
EUETS in
Scotland.

Table 4: Net Scottish Emissions Account for 2014 (
tCO
2e)

Greenhouse Gas Inventory

Net Scottish emissions - see table 2 (C)

46,704,130

Carbon Units

Number of units to be credited to or debited from the
NSEA - see
table 6 (D)

4,818,393 credited to
NSEA

NSEA

C - D

41,885,736

Based on the
NSEA,
Scotland's emissions fell by 12.5 per cent in 2014 on the previous
year. The longer term trend to date shows a reduction of 45.8 per
cent from the 1990/1995 baseline period. This means that the level
of Scotland's statutory 2020 target to reduce emissions by 42 per
cent from baseline levels has been exceeded, six years early
.

Proportion of the reduction in the net Scottish emissions
account which is accounted for by reductions in net Scottish
emissions

Section 8 of the Act places a duty on the Scottish Ministers to
ensure that reductions in net Scottish emissions of greenhouse
gases account for at least 80 per cent of the reduction in the net
Scottish emissions account in any target year - the "domestic
effort target". In effect, this ensures that the majority of the
action to meet emission reduction targets is taken domestically,
rather than by offsetting domestic emissions through the purchase
of international credits.

There are two mechanisms by which carbon units can be credited
to / debited from the
NSEA.

i As the result of the operation of the
EU Emissions Trading
System (
EUETS) in
Scotland. The details of this mechanism are set out in the Annex to
this report.

ii. Ministers may credit to the
NSEA any
international carbon units purchased by them, thereby offsetting
domestic emissions. The Climate Change (Limit on Carbon Units)
(Scotland) Order 2011 sets limits for the period 2013-2017 which
allows Ministers the option to purchase (credit) up to 203,600
carbon units in 2014 in addition to credits or debits to the
Scottish account through the operation of the
EUETS.

For the specific purpose of ascertaining whether the domestic
effort target has been met, the Act stipulates that the use of
carbon units through the operation of the
EUETS is treated
as though it is a reduction in "net Scottish emissions".

For the purposes of the domestic effort target in 2013 and 2014,
the net Scottish emissions and net Scottish emissions account are
the same. This is because no units were credited to the
NSEA in
either of the years as a result of the purchase of international
carbon units. This means that the reduction in net Scottish
emissions of greenhouse gases account for 100 per cent of the
reduction in the net Scottish emissions account in the 2014 target
year (see Table 5).

Table 5: Change in net Scottish emissions (including the
operation of the
EUETS) between
2013 and 2014 as a proportion of the change in the Net Scottish
Emissions Account between 2013 and 2014

Target Year

Net Scottish Emissions

Net Scottish Emissions Account

Proportion of the change in the
NSEA which
is accounted for by changes in Net Scottish
emissions

2013

47,885,327

47,885,327

100%

2014

41,885,736

41,885,736

Change between 2013 and 2014

-5,999,590

-5,999,590

Carbon Units credited or debited to the
NSEA

Table 6 sets out the effect of the
EUETS on the
NSEA in
2014. Further detail on this mechanism are set out in the
Annex
to this report.

Table 6: The effect of the
EUETS on the Net
Scottish Emissions Account in 2014 (
tCO
2e)

Total amount of units surrendered from fixed
installations

16,842,869

Estimate of surrendered
CO
2 emissions from domestic aviation

503,627

Estimate of surrendered
CO
2 emissions from international
aviation

1,193,028

Total estimate of surrendered emissions
(E)

18,539,524

Fixed installations cap

12,356,118

Domestic aviation cap

443,255

International aviation cap

921,758

Total 2014
EUETS cap
("Specified Amount") for Scotland (F)

13,721,131

Number of units to be credited or debited from the
Net Scottish Emissions Account (E - F)

4,818,393 credited to
NSEA

Table 7 sets out carbon units which have been purchased, and
carbon units which have been held and not surrendered.

Table 7: Total amount of carbon units which have been
purchased, and those that are held and not surrendered,
2014

Number of Units

Type of Units

Number of carbon units purchased

0

Not applicable

Number of carbon units held and not surrendered

0

Not applicable

Amount of carbon units credited to the Net Scottish
Emissions Account

0

Not applicable

Amount of the
NSEA for
each preceding target year and cumulative amount of the net
Scottish emissions account for the target year

Table 8 sets out the amount of the net Scottish emissions
account for the target year and each preceding target year. Table 8
also states the cumulative amount of the net Scottish emissions
account for the target year.

Table 8: Amount of the Net Scottish Emissions Account for
each target year and the cumulative amount of the Net Scottish
Emissions Account for the target year (
tCO
2e)

Target Year 2010

57,980,025

Target Year 2011

55,219,648

Target Year 2012

55,564,609

Target Year 2013

47,885,327

Target Year 2014

41,885,736

Cumulative 2010-2014

258,535,344

Adjustments to net Scottish emissions account for earlier
target years and cumulative amount of the net Scottish emissions
account for all preceding target years

Table 9 contains data on revisions to previously reported
estimates of the net Scottish emissions account for earlier target
years, together with the revised amount and reason for any
revision.

REASON FOR REVISION. This follows similar
revisions to the net Scottish emissions as described in the
Annual Target Report for 2011 and in the Revisions paper.

FOR THE 1990-2012 INVENTORY

2010

55,892,876

+1,323,176

57,216,053

2011

54,251,910

+1,118,036

55,369,946

REASON FOR REVISION. This follows similar
revisions to the net Scottish emissions as described in the
Annual Target Report for 2012 and in the Revisions paper.

FOR THE 1990-2013 INVENTORY

2010

57,216,053

+3,277,550

60,493,603

2011

55,369,946

+2,439,503

57,809,448

2012

55,665,180

+2,128,311

57,793,491

REASON FOR REVISION. This follows similar
revisions to the net Scottish emissions as described in the
Annual Target Report for 2013

FOR THE 1990-2014 INVENTORY

2010

60,493,603

-2,513,579

57,980,025

2011

57,809,448

-2,589,800

55,219,648

2012

57,793,491

-2,228,882

55,564,609

2013

49,724,807

-1,839,480

47,885,327

REASON FOR REVISION. This follows similar
revisions to the net Scottish emissions as described in
Part 2 of this report, and described
in more detail in the Official Statistics Release
Scottish Greenhouse Gas Emissions 2014.

Table 10 shows the revisions to the cumulative amounts of
greenhouse gas emissions for preceding target years.

Table 10. Revisions to Cumulative Amounts in Preceding
Target Years. All Values in
tCO
2e

TARGET YEAR

Cumulative Amount previously reported

Revision required

Revised Cumulative Amount(G)

Net Scottish Emissions Account for the Target
Year(H)

New Cumulative Amount(G + H)

2010

Not Applicable

Not Applicable

Not Applicable

54,713,907

54,713,907

2011

54,713,907

+1,178,969

55,892,876

54,251,910

110,144,787

2012

110,144,787

+2,441,212

112,585,998

55,665,180

168,251,178

2013

168,251,178

+7,845,364

176,096,542

49,724,807

225,821,349

2014

225,821,349

-9,171,741

216,649,608

41,885,736

258,535,344

Chart 2 shows the impact of successive revisions to the
inventory on the Net Scottish Emissions Accounts for the each of
Target Years from 2010 to 2013. It also shows the Net Scottish
Emissions Account in 2014.

Chart 2. Impact of successive revisions to the inventory on
the Net Scottish Emissions Accounts for each of the Target Years
from 2010 to 2013, and the Net Scottish Emissions Account in 2014.
Values in
MtCO
2e

The fixed annual targets for 2010-2027 were set on the basis of
the 1990-2008 inventory, which was the latest inventory available
at the time. This estimated baseline emissions to have been 70.201
MtCO
2e and the 2020 target was set at 40.717
MtCO
2e, which equated to a 42 per cent reduction
in line with the level of the 2020 interim target set by the Act.
Successive revisions means that the reductions required to meet
each of the fixed annual targets is now significantly greater than
was envisaged when the targets were set. So, for example, to reach
the 2020 annual target now equates to a 47.3 per cent reduction in
emissions (Table 11).

Table 11. Annual Targets for the period
2010-2027

Year

Targets (in
tCO
2e)

Percentage reduction against 1990 baseline when
targets were set - using the 1990-2008 inventory